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TORONTO, Canada – Canada has selected Germany’s ThyssenKrupp Marine Systems (TKMS) as the preferred supplier for a new fleet of up to 12 conventionally powered submarines, marking what Prime Minister Mark Carney described as the largest military procurement project in the country’s history.
The announcement was made Monday ahead of this week’s NATO summit, where alliance members are expected to present plans supporting increased defense spending commitments.
Carney said the planned submarine acquisition represents the largest defense procurement ever undertaken by Canada and emphasized that the TKMS design is well suited for operations in Arctic waters as well as NATO missions.
“The submarine is proven and capable,” Carney said, noting that more than one-third of NATO member states already operate submarines supplied by TKMS.
Contract Negotiations Set to Begin
Canada has identified ThyssenKrupp Marine Systems as its preferred supplier, with negotiations now expected to begin on a final contract.
Carney declined to disclose the overall value of the deal, saying only that it would involve “tens of billions of dollars” in investment.
German Chancellor Friedrich Merz welcomed the decision, describing it as a boost for transatlantic cooperation.
“This is a strong signal for our transatlantic and European partnership,” Merz said before thanking Carney.
TKMS secured the preferred supplier status after competing against South Korean shipbuilder Hanwha Ocean.
The German company said its conventionally powered submarines would enhance interoperability because many NATO allies already operate similar vessels.
Canada Expands Defense Spending
The procurement forms part of Canada’s broader effort to modernize its armed forces and strengthen its contribution to NATO.
After years of falling short of alliance spending targets, Canada reached NATO’s previous benchmark of spending 2% of gross domestic product on defense this year.
Carney has since pledged to increase defense spending to 5% of GDP by 2035.
He said the government’s existing fiscal plan already places Canada on track to reach defense spending equal to 4% of GDP by 2030, ahead of NATO’s broader timeline.
New Fleet to Replace Aging Submarines
Carney said Germany and Norway, which jointly developed the submarine platform, have agreed to free up production capacity to accelerate deliveries.
Under the proposed timeline, Canada expects to receive its first four submarines by 2034—two years earlier than TKMS had previously projected.
The new fleet will replace Canada’s four Victoria-class submarines, which Ottawa purchased secondhand from the United Kingdom in the late 1990s.
No American company participated in the competition because the United States manufactures only nuclear-powered submarines, while Canada specifically sought conventionally powered diesel-electric vessels.
Arctic Security Remains a Priority
Carney said strengthening Canada’s naval capabilities is essential given the country’s geography and growing strategic interests in the Arctic and surrounding oceans.
“The sovereignty of our country, bounded by the three oceans and the world’s longest coastline, depends on our maritime capabilities,” he said.
The submarine program is expected to become a central element of Canada’s long-term defense strategy as the country invests in modernizing its military while reinforcing its commitments to NATO and Arctic security.
This report is based on reporting by The Associated Press.
Topics: Canada | Germany | ThyssenKrupp Marine Systems | NATO | Defense | Submarines | Arctic | Military Procurement
